Carbon Market News

The Article 6.4 Supervisory Body has adopted a methodology allowing eligible grid-connected renewable electricity projects to generate credits under the Paris Agreement Crediting Mechanism. Effective from 30 July 2026, A6.4-AMM-003 covers new hydropower, wind, solar and geothermal plants, subject to technology-specific restrictions and rigorous additionality tests. Projects must pass regulatory, lock-in, investment and common-practice analyses, meaning commercially viable or legally required renewable projects will not automatically qualify. The methodology excludes biomass, existing-plant retrofits and direct electricity supply to specified consumers. Solar projects cannot occupy officially classified agricultural or forest land, while eligible hydropower is generally limited to 15 MW and cannot involve new reservoirs. The Supervisory Body also updated the mechanism registry procedure but postponed approval of a household cooking efficiency methodology pending further work. The decision expands the mechanism beyond previously approved landfill-gas methane and nitric-acid nitrous-oxide methodologies while maintaining conservative safeguards.
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#PACM #A64ER #RenewableEnergy #UNFCCC #Additionality

As carbon rating providers prepare to seek authorisation under the EU ESG Ratings Regulation, BeZero called on ESMA to establish clear boundaries between regulated ratings and other carbon-market services. The company said existing guidance provides greater clarity on permitted business models, engagement with rated entities, governance and organisational disclosures. However, BeZero argued that rating providers and their wider corporate groups should not also offer project design, data, digital MRV or verification services to developers or standards bodies whose work they rate. In its view, conducting both activities creates a structural conflict that cannot be adequately addressed through disclosure, staff separation or separately governed subsidiaries. BeZero urged ESMA to require regulated rating groups to remain functionally independent, arguing that such separation would strengthen the credibility, confidence and trustworthiness of carbon-market ratings.
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#ESMA #BeZeroCarbon #CarbonRatings

Australia’s government will end the Climate Active certification programme following a formal transition, with certification expected to cease on 30 June 2027. An eight-week consultation launched on 24 July is considering either full closure or closure while retaining voluntary standards and guidance. The government cited mandatory climate-related financial disclosures, new emissions targets, updated regulatory oversight and stronger expectations for direct emissions reductions. Climate Active currently certifies 423 brands and represents most voluntary ACCU demand. Voluntary ACCU cancellations fell to 488,979 in the first half of 2026, the lowest level since 2021. Participants have surrendered over 2.6 million ACCUs and 55.1 million carbon offsets since 2010.
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#Australia #ClimateActive #ACCUs #CarbonNeutrality #ClimateClaims

The United States has expressed deep concern over a European Commission proposal to impose carbon costs on emissions from certain international flights departing Europe. The proposal would cover flights landing in countries located within 5,000 kilometres of a specified point in central Europe. The threshold was designed to exclude direct transatlantic flights, partly to avoid confrontation with the Trump administration, but Washington warned that it could take appropriate action to protect American consumers and businesses. The dispute echoes an earlier confrontation in 2012, when U.S. opposition forced the EU to retreat from extending its emissions trading system to international aviation. The proposal also raises concerns over its interaction with CORSIA. Fifteen airline CEOs have warned that expanding the EU ETS could undermine CORSIA’s legitimacy, while MSCI estimates that airlines could face up to US$127 billion in cumulative CORSIA compliance costs by 2035.
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#EU #USA #EUETS #CORSIA #AviationEmissions #CarbonPricing #InternationalAviation #ClimatePolicy

The European Commission’s proposed revision of the EU ETS for Phase 5 would establish a centralised mechanism for integrating permanent carbon removals into the compliance market. Rather than allowing emitters to purchase removals directly, the Commission would auction 250 million additional allowances, plus a 10-million-tonne contingency, between 2031 and 2040. Auction revenues would finance an equivalent volume of domestic permanent removals, with annual procurement reaching 48 million tonnes by 2040. Initially, eligibility would be limited to CRCF-certified BioCCS and DACCS, excluding technologies such as biochar pending review. The proposal also provides for up to 260 million international credits from 2036 to 2040, subject to a 2033 review and centralised EU procurement. At an assumed price of €200 per tonne, experts estimate that domestic procurement could create a €50 billion market. However, the proposal remains subject to negotiations involving the European Parliament and Council before becoming law.
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#EUETS #CarbonRemoval #CDR #DACCS #BioCCS #CRCF #ComplianceMarket